New retail, from managing products to operators

Traditional retail is really called the era of product management. Previously in B&T Home, if we sold 5000 sets of cabinets last year, we will try to sell 6000 sets of cabinets this year. Everything is a business product.

It's not that we didn't want the operator at the time, but the consumer lost contact when they left the store. Building materials supermarkets like B&T Home are OK, because we have delivery, we probably know the address. Other consumer goods, no longer in contact after leaving.

The biggest background of new retail is the era of mobile Internet, which has achieved human-computer integration. Consumers come to your consumption place with mobile phones. You can solve both problems of traditional retail by grabbing consumer phones. 1、 You won't lose contact with him anymore; 2、 Do you know who he is

The advantages of new retail

Comparing E-commerce: Low Customer Acquisition Costs and Logistics Costs

A good business model can be tested with two rulers: those that cannot significantly improve user experience are not good models; Anything that cannot double the efficiency of a company is not a good model. And new retail should also start from user experience and efficiency.

E-commerce has two weaknesses: 1. The cost of acquiring customers is increasing; 2. Logistics costs remain high, and although they may not continue to rise, their proportion to the transaction amount is relatively fixed and relatively high.

New retail must be the utilization of existing retail stores, and the two insignificant advantages of traditional stores can be reflected: firstly, the customer flow of traditional stores is almost free of charge, it is just whether the customer flow is converted into user operation; Secondly, traditional stores have a B2B replenishment process, and this logistics cost has already occurred. If customer self pickup is the premise, or if traditional retail manual replenishment is used for the last 100 meters, the logistics cost will not increase.

So, the biggest taboo of new retail is not addressing the two weaknesses of e-commerce, while the two advantages of traditional retail have not been fully realized.

Compared to traditional retail: high human efficiency and flat efficiency

Compared to traditional retail, where should new retail leverage its advantages? The big difference between it and traditional retail is that it needs to find ways to significantly improve the human and floor efficiency of traditional retail.

The most painful thing for traditional enterprises is that labor costs are rising and rental costs are rising. New retail needs to solve two problems of traditional retail: making traditional retail more efficient and significantly increasing per capita output; Significantly increase output per square meter. So the human efficiency of new retail scenes is definitely much higher than that of traditional retail.

The human efficiency of e-commerce is very high, therefore, the new retail format can achieve breakthroughs in the two weaknesses of e-commerce, while solving the two blind spots of traditional retail. The efficiency of new retail should be twice that of traditional retail, and also better than e-commerce.

Human efficiency must be higher than traditional retail, but can be lower than e-commerce; The cost of acquiring customers is much lower than that of e-commerce, and the logistics cost is much lower than that of e-commerce, while the efficiency is twice that of traditional retail. When this efficiency is achieved, the new retail efficiency rises.

Of course, not all traditional retail can be transformed into new retail. Some traditional retail should be replaced by the Internet and e-commerce.